The Cheesecake Factory Incorpor

Valuation Analysis

About the Company

The Cheesecake Factory Incorporated operates and licenses restaurants in the United States and Canada. It operates bakeries that produce cheesecakes and other baked products for its restaurants, international licensees, third-party bakery customers, external foodservice operators, retailers, and distributors. The company operates restaurants under the brands comprising The Cheesecake Factory, North Italia, Flower Child, and Fox Restaurant Concepts. The Cheesecake Factory Incorporated was founded in 1972 and is headquartered in Calabasas, California.

The Cheesecake Factory Incorpor Stock at a Glance

The Cheesecake Factory Incorpor (CAKE) is currently trading at $75.28 with a market capitalization of $3.7B. The trailing P/E ratio stands at 22.08x, with a forward P/E of 16.92x. The 52-week range spans from $43.07 to $76.52; the current price is 1.6% below the yearly high. Year-over-year revenue growth stands at +5.6%. The net profit margin stands at 4.34%.

💰 Dividend

The Cheesecake Factory Incorpor pays an annual dividend of $1.20 per share, representing a yield of 1.59%. The payout ratio stands at 32.55%.

📊 Analyst Rating

17 analysts rate The Cheesecake Factory Incorpor (CAKE) on consensus: None. The average price target is $66.76, implying -11.31% from the current price. Analyst price targets range from $50.00 to $76.00.

The Cheesecake Factory Incorpor: The Investment Case in Detail

The Cheesecake Factory Incorpor (CAKE) operates in the Consumer Cyclical — specifically Restaurants — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Earnings growth of 52.2% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. Return on equity of 41.33% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard.

The Bear Case

With a net margin of just 4.34%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. The debt-to-equity ratio of 466.38% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn. Short interest sits at 34.67% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

What to Watch Next

• The forward P/E of 16.92x is meaningfully below the trailing 22.08x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 96.3% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to market-like volatility, elevated short interest (34.67%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

Related Stocks in the Same Sector

Where can I buy The Cheesecake Factory Incorpor?

Compare top-rated brokers — low fees, trusted providers, fully regulated.